Private Mortgage Lenders in Ontario

Toronto and the GTA have one of the largest private mortgage markets in Ontario. Private lenders are commonly used here by borrowers with tight closing timelines, self-employed or non-traditional income, and bruised credit.

Since Toronto-area home values are high, borrowers may sometimes use private mortgages to complete time-sensitive transactions or bridge a short-term financing gap before moving back to a bank or B lender.

Use the lender table below to compare Ontario private mortgage lenders serving Toronto and the GTA by rate, fees, max LTV, term structure, and borrower profile. It also includes mortgage brokers that have access to Ontario private lenders.

Private Mortgage Lenders and Brokers in Toronto and the GTA

Private mortgage lenders in Ottawa serve borrowers across the National Capital Region, including Kanata, Nepean, Orleans, and surrounding communities. Private mortgages can be useful for borrowers who need fast funding, want to access equity, or do not meet bank qualification rules because of credit, income, or debt-service issues.

When comparing Ottawa private lenders, look closely at total fees, term length, and whether the lender is comfortable with your property type and exit plan.

Private Mortgage Lenders and Brokers in Ottawa

Private mortgage lenders in Kitchener-Waterloo can be an option for borrowers who need flexible short-term financing for owner-occupied properties, investment properties, debt consolidation, or time-sensitive transactions.

As with any private mortgage, borrowers in Kitchener-Waterloo should compare more than the rate alone. Fees, max LTV, property type, and the lender's expectations for repayment can have a major impact on the true cost of borrowing.

Private Mortgage Lenders and Brokers in Kitchener-Waterloo

Private mortgage lenders in London and St. Thomas can help borrowers who need a short-term mortgage solution outside standard bank guidelines. This can include borrowers with bruised credit, self-employment income, urgent closings, or a need to access home equity through a first or second mortgage.

Before accepting a private mortgage, make sure you understand the interest rate, lender fee, broker fee, legal costs, term length, and what happens if you need to renew or extend the mortgage.

Private Mortgage Lenders and Brokers in London and St. Thomas

The cost of a private mortgage in Ontario depends on more than just the interest rate. Private lenders usually price a mortgage based on factors such as your loan-to-value ratio, whether it is a 1st or 2nd mortgage, the property, your credit profile, and how you plan to repay or refinance the loan.

In addition to interest, borrowers should also expect other costs, which may include:

• lender fee
• broker fee
• legal fees
• appraisal fee
• title insurance, registration, or discharge costs
• renewal or extension fees

Since private mortgages are short-term, fees can have a major impact on the true cost of borrowing. That is why it is important to compare the all-in cost, not just the headline rate. A mortgage with a slightly lower rate may still cost more overall if the fees are materially higher.

Let's consider a $1 million house in Toronto that a homeowner is looking to get a private mortgage for. The homeowner had been denied a renewal at a bank, but their previous mortgage payments had reduced their mortgage to $600,000. This reflects the mortgage portfolio of Atrium, a mortgage investment company (MIC), which has an average loan-to-value ratio of around 60%.

MCAN, another MIC, has an average mortgage term of just over one year. Let's say that the homeowner is only looking for a private mortgage with a one-year term. After fixing up their credit, the homeowner is planning on switching back to a bank. How much will a private mortgage cost?

With a private mortgage of $600,000 that only requires interest payments at a rate of 6%, your total interest cost would be $36,000 over one year. Your monthly interest-only payment will be around $3,000. You can also expect to pay around $12,000 over the year in private lender fees at a fee rate of 2%. That brings the total cost with fees to $48,000 for a one-year private mortgage term. None of the payments went towards the principal.

Private mortgage lenders are an alternative to banks for those with a bad credit score or low income, but can also be used for those looking for debt consolidation or to borrow money for renovations. Private lenders can offer mortgages even to those with a low credit score or no income; however, interest rates on private mortgages are significantly higher than mortgage rates offered by banks.

For current pricing examples, compare our Private Mortgage Rates page and use our Private Mortgage Calculator to estimate interest-only payments and total interest cost.

In Ontario, private mortgage lenders doing business through mortgage brokers do not need to be licensed. Ontario's mortgage sector is regulated by the Financial Services Regulatory Authority of Ontario (FSRA) under the Mortgage Brokerages, Lenders and Administrators Act, 2006. FSRA licenses mortgage brokers, agents, brokerages, and administrators involved in regulated mortgage brokering activities in Ontario. Consumers considering an alternative or private mortgage should make sure they are working with the appropriate licensed mortgage professional, and FSRA specifically notes that if you need an alternative or private lender, you must work with a Level 2 mortgage agent or a mortgage broker.

How do you become an Ontario private lender?

Since you do not need to have a license to be a private lender in Ontario, all you need to become a private lender is money to invest.

Investing in private mortgages can be as easy as purchasing the stock of a Mortgage Investment Corporation. You can also join a syndicate or directly lend to individuals looking to borrow.

Can a lawyer lend money to their clients in Ontario?

Lawyers can become private lenders for their clients; however, they cannot represent their clients in that mortgage transaction.

Are private mortgages popular in Ontario?

Private mortgages are an established part of Ontario's mortgage market, especially in larger urban centres and in situations where borrowers need flexibility that banks do not offer.

According to the Financial Services Regulatory Authority of Ontario (FSRA), private mortgage lenders held a 16% market share of Ontario's total mortgage market in 2024 by number of mortgages. That means 16% of all mortgages in Ontario are by private mortgage lenders. That figure is even higher in the GTA, where private mortgages made up 17% of all GTA mortgages in 2024.

In terms of market share by dollar value, private lenders in Ontario had a 12.5% market share.

Borrowers in Ontario often use private mortgages because they need speed, flexibility, or access to financing outside traditional bank guidelines. Common reasons include bruised credit, self-employed or non-traditional income, second mortgages, land financing, construction financing, and urgent closings.

The trade-off is cost. Private mortgages typically come with higher rates and fees, so they are usually better suited to short-term situations with a clear exit strategy.

A lenders, such as a major bank, usually offer the lowest rates and the strictest qualification rules. You will get the best mortgage rates with A lenders, and you can also make low down payments with insured mortgages. A lenders are regulated by the government.

B lenders are more flexible than banks but still require more documentation and lower risk than many private lenders. B Lenders include smaller lenders, such as credit unions, monoline lenders, and mortgage finance companies. This includes Meridian Credit Union, MCAP, and First National. B lenders can have slightly higher rates, but in some cases, they may have lower rates than the big banks. B lenders are also regulated by the government, and can offer insured mortgages.

Private lenders are usually the most flexible, especially for short-term, equity-based financing, but they also tend to have the highest rates and fees.

For many borrowers, a private mortgage is a temporary step rather than the final destination. The long-term goal is often to move from a private lender to a B lender or an A lender once the file improves.

Can I get a private mortgage in Ontario with bad credit?

Sometimes. While some private lenders may have no minimum credit score requirement, others do. Private lenders in Ontario often focus more on equity, LTV, property, and exit strategy than banks. However, bad credit can still affect pricing, fees, and available mortgage options.

Do I have to pay broker fees for a private mortgage in Ontario?

Often, yes. If a broker arranges the mortgage, broker fees may be charged separately from the lender fee. Always ask for a full breakdown of all fees in writing before you commit.

What term lengths do private mortgages usually have in Ontario?

Many private mortgages are short-term, often around 6 to 12 months, although terms can vary by lender and situation. They are usually designed as temporary financing until you refinance, sell, or otherwise repay the loan. You can often find term lengths for 3 months to 24 months as well.

Do I have to pay fees again if I renew a private mortgage?

Yes. Depending on the lender and the structure of the renewal or extension, you may face a renewal fee, a new lender fee, new broker fees, and additional legal costs. Ask about renewal pricing before signing the original mortgage, as you will usually pay the same fees as getting a new mortgage.